Saving 20% royalty. Losing 40% production?

The SkunK covered the problem Golden Grain LLC was having getting their non-patented COES up to speed in his 21 March blog HERE.

"We are continuing to fine tune the operation of our corn oil extraction equipment. We continue to experience reliability issues with the corn oil extraction equipment."
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Now we hear like words from Cardinal Ethanol HERE p.22 on 14 May

"We are currently operating at 60% of the designed capacity of our corn oil extraction equipment. We are working with ICM, Inc. to fine tune the operation of our corn oil extraction equipment and hope to have the equipment operating at 100% capacity in the near term."

In a surprise move they also point out that this quarter was actually better than last year:

"Our corn oil sales increased in the three month period ended March 31, 2010 as compared to the same period in 2009 as a result of increased production this last quarter. . . "

These Corn Oil Extraction Problems from an otherwise squared away Ethanol Plant. . .

"The ethanol plant continues to produce ethanol and distillers grains at a rate that is in excess of our nameplate production capacity of 100 million gallons per year."p22



SkunK